The Standard

The Standard
DeFiHardhat
20,000 USDC
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Submission Details
Severity: low
Valid

Division before multiplication results in precision loss

Solidity is unable to handle floating point numbers and will therefore truncate the integer during division. This may result in an unnecessary loss of precision when attempting to calculate costInEuros inside the distributeAsset method.

Impact

The current implementation of the distributeAsset method can result in incorrect financial calculations of the costInEuros

Recommendations

In this version, the formula first performs all the multiplications (_portion * 10 ** (18 - asset.token.dec) * uint256(assetPriceUsd) * _hundredPC) and then divides the result by the product of uint256(priceEurUsd) and _collateralRate. This way, division is performed after all multiplications, which helps in minimizing precision loss in the calculations.

function distributeAssets(ILiquidationPoolManager.Asset[] memory _assets, uint256 _collateralRate, uint256 _hundredPC) external payable {
consolidatePendingStakes();
(,int256 priceEurUsd,,,) = Chainlink.AggregatorV3Interface(eurUsd).latestRoundData();
uint256 stakeTotal = getStakeTotal();
uint256 burnEuros;
uint256 nativePurchased;
for (uint256 j = 0; j < holders.length; j++) {
Position memory _position = positions[holders[j]];
uint256 _positionStake = stake(_position);
if (_positionStake > 0) {
for (uint256 i = 0; i < _assets.length; i++) {
ILiquidationPoolManager.Asset memory asset = _assets[i];
if (asset.amount > 0) {
(,int256 assetPriceUsd,,,) = Chainlink.AggregatorV3Interface(asset.token.clAddr).latestRoundData();
uint256 _portion = asset.amount * _positionStake / stakeTotal;
- uint256 costInEuros = _portion * 10 ** (18 - asset.token.dec) * uint256(assetPriceUsd) / uint256(priceEurUsd) * _hundredPC / _collateralRate;
+ uint256 costInEuros = (_portion * 10 ** (18 - asset.token.dec) * uint256(assetPriceUsd) * _hundredPC) / (uint256(priceEurUsd) * _collateralRate);
if (costInEuros > _position.EUROs) {
_portion = _portion * _position.EUROs / costInEuros;
costInEuros = _position.EUROs;
}
_position.EUROs -= costInEuros;
rewards[abi.encodePacked(_position.holder, asset.token.symbol)] += _portion;
burnEuros += costInEuros;
if (asset.token.addr == address(0)) {
nativePurchased += _portion;
} else {
IERC20(asset.token.addr).safeTransferFrom(manager, address(this), _portion);
}
}
}
}
positions[holders[j]] = _position;
}
if (burnEuros > 0) IEUROs(EUROs).burn(address(this), burnEuros);
returnUnpurchasedNative(_assets, nativePurchased);
}
Updates

Lead Judging Commences

hrishibhat Lead Judge almost 2 years ago
Submission Judgement Published
Validated
Assigned finding tags:

precision

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